Self-Employed to PAYE mid-year

[fsmith]

Hi, I need a bit of help figuring out what I need to do at the moment.

I was self-employed from November 2015, and did my Self Assessment for 2015-2016. I've stopped being Self-Employed now, and became a full-time PAYE employee from September 1st 2016. However, my employer is only paying my National Insurance, and not sorting out the income tax side of things.

Do I need to fill in the HMRC 'stop being self-employed' form, and then do a Self Assessment for 2016-2017?

Thanks for any help

[JRG]

Yes, tell HMRC that you've ceased self-employment, then their tax records will be up-to-date.

When you say your employer is 'not sorting out the income tax side of things', what exactly do you mean?
Is income tax being deducted from your salary, not?
Have you a current tax code (which should appear on your payslip)?

[fsmith]

Hello

They aren't deducting income tax from my salary, just my national insurance.
I do have a current tax code.

Thanks

[JRG]

Is it possible that you won't earn enough in your PAYE job by April 5th 2017 to actually pay tax?

If the tax code on your payslip is the standard 1100L (or 1100T), and you don't expect your PAYE income for 2016-17 to exceed £11,000, then there will be no income tax to pay.


When you complete your Self Assessment for 2016-17 you need to enter both your self-employment income and your PAYE income. HMRC will then calculate your income tax liability. Any unpaid tax will have to be paid by 31st January 2018.

Please note that if the unpaid tax is a large amount HMRC may require you to make payments on account on 31st January 2018 and 31st July 2018, because they automatically assume you will have the same amount of unpaid tax for the 2017-18 tax year. Being on PAYE you will probably have no extra tax to pay in 2017-18, so you can request the payments on account to be reduced to zero.

To alleviate the problem of payments on account, you could contact HMRC, explain the situation, and ask them to adjust your 2016-17 tax code, so as to collect any tax due to date from your PAYE income (bearing in mind there are only three monthly paydays remaining this year).

[fsmith]

Yeah, the taxcode is 1100L.
I definitely won't exceed £11,000 of PAYE income by April.
Thanks a lot for clearing that up, I suspected as much but I needed to double check. Better safe, than sorry!

Sorry, but another quick question: do I have until 5th October 2017 to complete my 16/17 Self Assessment?
I'm getting slightly confused by the upcoming 31st January online deadline, is that just for outstanding payments?

Thanks again

[fsmith]

ah I meant December, not October

[JRG]

If you complete a paper tax return, for 2016-17 it must be submitted by the 31st October 2017.

If you complete an online tax return, for 2016-17 it must be submitted by the 31st January 2018.

[fsmith]

Thanks for all your help, I appreciate it!